Finding Your Perfect School Starts Here!
Step 1
Please answer the question below so that we can help you find your ideal school.
Survey Shows Most Americans Do Not Understand 529 College Savings Plans
By Catherine Groux
Posted June 12, 2012 03:05 PM
Most students do not understand all of their options for paying for college.As college becomes more expensive, many professionals believe it is increasingly important for bachelor's degree seekers to fully understand all their options when it comes to paying for school. However, a recent survey shows most individuals do not have enough information on this topic, particularly when it comes to 529 college savings plans.
A recent survey by financial services firm Edward Jones shows that 62% of Americans do not know what a 529 plan is. The survey asked individuals to identify the definition of a 529 plan, providing them with a list of possible answers to choose from. A majority of Americans picked the incorrect answer, while 15% said they did not know. Even among individuals who have college degrees, only 53% could identify what a 529 plan is.
Still, it is important for degree seekers to know about this option, as it could help them pay for college. According to the U.S. Securities and Exchange Commission, a 529 plan - or qualified tuition plan - is a tax-advantaged savings plan that helps people save for future college costs. Investing in a 529 can offer users certain tax benefits, as earnings are not subject to federal tax or, in most cases, state tax.
